6.02 Income Assignment

Alfred Smith is a waiter at the Savannah Steakhouse and his wife Beatrice is a school bookkeeper for the Savannah City Schools. At the end of this assignment, there is a simulated tax return for Alfred and Beatrice. Use it to answer the following questions.

1. What year does this income tax form cover?
2. Based on your answer to question 1, in what year would you expect someone to be filling out this form?
3. What unique identification number does the IRS use for taxation?
4. Do the Smith's have any children? What are their names?
5. How much did the Smiths make in gross pay?
6. Did the Smiths itemize their deductions or take the standard deduction?
7. Did the Smiths make any charitable contributions? If so, how much?
8. How much taxable income did the Smiths have? Is it the same as their gross pay?
9. How much were the Smiths expected to pay in taxes?
10. How much was already taken from their paychecks throughout the year?
11. Are the Smiths getting a tax refund? If so, how much?
12. Do the Smiths owe federal taxes beyond what was taken from their paychecks? If so, how much?
13. The 1040 form often points to two other types of items with either instruction to follow or something to fill out before you have the necessary information for this form. What do they call these other items that need to be followed along the way? (Hint: You'll see an example of one term in lines 25a and 25b, while you'll see an example of the other term in items 17 and 20 on Smith's return.)
14. How confident do you feel that you can accurately read a Form 1040 for relatively simple life situations? Explain your answer.
15. How confident do you feel that, as long as you follow instructions on the various forms, you could complete my own taxes at some point in the future? Explain your answer.

Note: For questions 14 and 15, I already completed. I just need to make sure all of my work is correct. Tax forms can be confusing at first, and the stress and worry about getting something wrong is a real issue for many Americans. Those questions are simply to give me a chance to reflect on how i currently feel about my readiness for dealing with federal income tax forms.

1040 U.S. Individual Income Tax Return 2021 OW NO. 1585-0074 Filling Status Single Do Married filing jointly (Married Sing separately (MFS) Head of household Hold) (] Qualifying wideway (OW) Chack only " you chocked the MFS box, enter the some of your spouse. If you checked the HOH or OW box enter the child's name if the qualitying pinion is a child but not your dependent Lay came Alfred A Smith 595-12-2536 LIMIT Boone's cold warily amber Beatrice B Smith 595-12-8745 number and wheel. I' you have a P.O. box Apt na. President Dection Campaign 123 Main Street Check hire I you. of your CA to go to this fund. Checking a Savannah 31302 box below will not change Foreign country name Fonion province Late/ county At any time during bod 1, did you meetive tell exchange, or otherwise dispose of any financial interest in any virtual currency? Standard Someone can claimc () You as a dependent ) Your spouse as a dependent Deduction Spouse itemlaws on a soparube return or your were a cal-status allen Aputkindness You Were bom before January 3, 1957 ] Are bind Spouses Was bom before January 2. 1957 0) is bind Dependents bon instructional if mort 19 Finit name Child Six credit than Your Charlene C Smith 555-12-3214 Daughter Onmon D Smith 555-12 1869 San and chies 1 Wages, salaries, tips, ofe. Attach Forbj W-2 1 91 223. Tax-swampt interest b Taxable interest Sch. BH Qualified cividanda b Ordinary dividends 4a IFA distributions b Taxable amount . Pensions and annuities b Taxable amount Social security benefits b Trouble amount . Capital gain or loss). Attach Schedule D if required I not required. check here Other Income from Schodule 1, Ine 10 Add lines 1. 20, 30, 4. So, 6b, 7, and 8. This is your total income 91, 229. Adjustments In income from Schedule 1, Ing 38 Subtract Ine 10 from Iine 9. This is your adjusted gross income 11 91,229. Standard deduction or Remized deductions (from Schedule A) 25,100. Charitble contributions if you wake the standard deduction (see inatuctiony) its Add Ines 12a and 12b 120 25, 700. 13 Own hind business income deduction from Form Sold or For WHOJ-A 14 Add Ines 12c and 13 25. 700. Taxable Income. Subtract Iin 14 from Ine 11. If zero or less, water -0 15 65, 529. Form 1040 coul